Business Intelligence and FMCG Glossary: #retailerownbrand
Retailer Own Brand
What is a retailer brand?
The term Retailer Own Brand – ROB (or “private label”) refers to ranges of FMCG products that distribution chains (hypermarkets and supermarkets) create and brand with their own trade name (Carrefour, Tesco, etc.). That is, everything that is not manufacturer’s branded products.
ROB products typically have significantly lower prices than their manufacturer’s brand equivalents, and their packaging uses the graphic symbols of the retail chain that distributes them. They are usually produced by manufacturers specialized in the category that can, or cannot, also market their own brand and that produce for the distribution chains following the standards agreed with the distributor.
Weight of ROBs
According to the Spanish EAE Business School’s study, “State of distribution brands after the economic crisis” (May 2018), ROBs are a phenomenon with special implantation in Europe, where they already hold a 31.4% share of the FMCG market, compared to 17.7% in North America, 8.3% in Latin America and 4.2% in Asia-Pacific.
Within Europe, Spain is a very pro-ROBs country with a 37.9% market share. According to the latest available data (2015), their market share in units has decreased somewhat in 2014-2015, (-0.7 points) due to the increase in the price of the MDD of Spain higher than the increase in the price of the manufacturer brands. As for the percentage of the total assortment that the MDD represents is 37.9% with a slight fall of 0.3 points. Figures that contrast with the European average that has a percentage of assortment of MDD of 26.7% and a fall of 0.6 points. In Spain, the MDD has a greater presence and resists better against the manufacturer’s brand.